Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,180.60 in a high volume. According to the daily time frame, we can observe supply in a volume above the average but with weak price action. The short-term trend is neutral. According to the H4 time frame, we can observe supply in a high volume. Our Fibonacci retracement 61.8% at the price of $1,181.00 is on the test. I am still expecting bullish movement so my advice is to focus on buying positions. The first resistance level is around the price of $1,200.00. According to the 30-minute time frame, there is still a valid inverted head and shoulders formation (bullish).
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,195.00
R2: 1,197.40
R3: 1,201.90
Support levels:
S1: 1,187.90
S2: 1,185.60
S3: 1,182.10
Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).
The material has been provided by InstaForex Company - www.instaforex.com